Chipmaker CXMT Becomes China’s Most Valuable Listed Company After Record Shanghai Debut

Chinese memory chipmaker CXMT Corp saw its shares soar 466% on their first day of trading in Shanghai, following Asia’s largest initial public offering (IPO) this year.

The surge lifted the company’s market value to about 3.3 trillion yuan ($487.7 billion), making it China’s most valuable listed company and surpassing the Industrial and Commercial Bank of China.

The stock closed at 49 yuan, well above its IPO price of 8.66 yuan, after hitting an intraday high of 55.03 yuan. CXMT, formerly known as ChangXin Memory Technologies, raised 57.9 billion yuan ($8.6 billion) in the IPO, the biggest semiconductor listing ever on mainland China.

Analysts say strong investor interest reflects growing demand for memory chips used in artificial intelligence (AI) systems.

However, some market watchers have warned that the company’s valuation may be difficult to sustain, citing the cyclical nature of the semiconductor industry and ongoing U.S. restrictions on advanced chip technology.

The company expects first-half revenue to increase more than sevenfold to between 110 billion and 120 billion yuan, while forecasting a net profit of 66 billion to 75 billion yuan, a sharp turnaround from a loss recorded a year earlier.

CXMT’s remarkable market debut highlights China’s determination to strengthen its domestic semiconductor industry and compete more aggressively in the global race for advanced technologies and AI development.

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